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Bond Law Review

Volume 20 | Issue 1 Article 4

6-1-2008

Prescription in Arab Civill Codes and the Unidroit Principles of International Commercial Contracts of 2004: A Comparative Analysis
Bashar H. Malkawi
Hashemite University, Jordan, bmalkawi@gmail.com

Recommended Citation
Malkawi, Bashar H. (2008) "Prescription in Arab Civill Codes and the Unidroit Principles of International Commercial Contracts of 2004: A Comparative Analysis," Bond Law Review: Vol. 20: Iss. 1, Article 4. Available at: http://epublications.bond.edu.au/blr/vol20/iss1/4

This Article is brought to you by the Faculty of Law at ePublications@bond. It has been accepted for inclusion in Bond Law Review by an authorized administrator of ePublications@bond. For more information, please contact Bond University's Repository Coordinator.

Prescription in Arab Civill Codes and the Unidroit Principles of International Commercial Contracts of 2004: A Comparative Analysis
Abstract

The Arab codes give the law of obligations the prominent place it occupies in the civil law system. These codes recognize (liberative or negative) prescription as a mode of barring claims as a result of inaction for a period of time. In addition, the UNIDROIT Principles of International Commercial Contracts of 2004 (PICC 2004) provides that prescription extinguishes an action to enforce a claim of right. The purpose of this article is to conduct a comparative exercise by analyzing similarities and differences between Arab civil codes and the PICC 2004. Arab civil codes and the PICC 2004 wrestle with the same concept, prescription, in more or less the same terms. However, the value of studying the PICC 2004 along with Arab civil codes is even greater because they do differ. The article concludes by arguing that certain prescription provisions in Arab civil codes are unclear and antiquated. Arab countries can reconcile their civil codes with more recent international legal instruments, such as the PICC 2004, without jeopardizing their own traditions and values.
Keywords

Arab civil codes, law of obligations, prescription, UNIDROIT

This article is available in Bond Law Review: http://epublications.bond.edu.au/blr/vol20/iss1/4

Malkawi: Prescription in Arab Civill Codes and the Unidroit Principles of

PRESCRIPTIONINARABCIVILCODESANDTHE UNIDROITPRINCIPLESOFINTERNATIONAL COMMERCIALCONTRACTSOF2004:A COMPARATIVEANALYSIS

BASHARH.MALKAWI* 1 Introduction

The Arab codes give the law of obligations the prominent place it occupiesinthecivillawsystem.AccordingtoSanhuri,obligations are to law what the backbone is to the human body.1Persons are originally free from obligation. To become bound by an obligation indicates a transition from that original state to one of legal subjection. Sources of obligations are contracts, torts, unjustified enrichment, and the law.2Hence, obligations may not arise from sourcesotherthanthosecontainedinthisexclusivelist. An obligation places the debtor under the duty to render a performance that must consist exactly of whatever he promised if theobligationresultsfromacontractoranyothersource.3Oncethe debtorfulfilshisdutyheisrestoredtohisoriginalstateoffreedom from obligation. However, there are certain cases where an
* BasharH.Malkawi,AssistantProfessorofCommercialLaw,Hashemite University,Jordan.HereceivedhisLLBfromYarmoukUniversityin 1999;LLMfromUniversityofArizonaCollegeofLawin2001;SJDfrom AmericanUniversity,WashingtonCollegeofLawin2005. 1 SeeAbdelRazzaqAlSanhuri,TheConciseInterpretationoftheCivilCode, Vol.I,38(1966). 2 Thequestionsclusteredunderthelabelsourcesofobligationsareof significantpracticalrelevance.Forexample,whetheradefendantis boundbecauseofacontractorofaquasidelicttotheobligationthe plaintiffisseekingtoenforcemattersbecausedifferentrulesgoverning prescriptionanddefaultwillbeaccordinglyapplicable.SeeHossamEl Ehwany&NaderM.Ibrahim,IntroductiontoLaw331(2004). 3 SeeAdnanAmkhan,SpecificPerformanceinArabContractLaw,9.4 ArabLawQuarterly324,326(1994)(itisageneralprincipleofArab contractlawthatacontractisconcludedintheexpectationthatthe obligorwillfulfillhispromisespecificallyandingoodfaith).

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obligation can be extinguished. That may be so because of confusion, compensation, novation, release, or subrogation. 4 But there is one important mode of extinction which cannot be overlooked in the literature, viz., prescription. Hardly any comparative study had been conducted in the area of prescription betweenArabcivilcodesandotherinternationalinstruments. The focus of this article will be on prescription rules in selected ArabcivilcodesascomparedwiththeInternationalInstituteforthe Unification of Private Law (UNIDROIT) Principlesof International CommercialContractsof2004.Thiscomparisonmightbesurprising to an Arab lawyers way of thinking where prescription rules belong to the law of obligations, as opposed to the law of commercial contracts. As far as general approach and manner of proceeding are concerned, the UNIDROIT Principles stand in similarity with Arab civil codes. Indeed, UNIDROIT Principles cover contractual claims within the entire field of obligations. Although the UNIDOIT Principles and Arab civil codes correspondence in matters of principle, there are also a number of differencesindetail. The article will proceed in three sections. Section two provides historical background to UNIDROIT and its work on harmonizing legal rules worldwide, specially its project for the transnational
4 Confusionreferstothecasewheretheattributesofthecreditorand debtorareunitedinthesameperson.Noonemaybeboundtorender performancetohimselfwhenthecreditoranddebtoristhesame person;thustheobligationnolongerhasapurposeandcomestoan end.Compensationtakesplacewhentwopersonsoweeachother reciprocallyidenticalobjects,thatis,wheneachoneisacreditorand debtoroftheotherandtheobjectoftheperformanceofeachobligation isathingofthesamekindsuchasmoney.Novationisthe extinguishmentofanexistingobligationbythesubstitutionofanew one.Byreleaseismeantthegratuitousrenunciationmadebyacreditor infavorofhisdebtoroftherighttoclaimthewholeorapartofthe debt.Thereisnopaymentorsubstitutionofanewdebtor,thereis simplyanabandonmentofthedebt.Subrogationisthesubstitutionof onepersontotherightsofanother.SeeElEhwany&Ibrahim,supra note2,at332349.SeealsoSaulLitvinoff,5LouisianaCivilLawTreatise: TheLawofObligations540546,579582,598,633635(2ded.2001) (discussingthemodesofextinguishinganobligation).

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harmonizationofcontractlaw.Sectionthreeexaminesthedefinition ofprescriptionandthedifferenttypesofprescription.Moreover,it analyses in detail the similarities and differences between the UNIDROIT Principles and selected Arab civil codes concerning prescription. Finally, the article concludes by arguing that while prescriptionrulesinArabcivilcodesandthePICC2004correspond withregardtocertainpoints,significantdifferencesstillexist.Arab countriesmayusethePICC2004asabenchmarkforfurtherchange toexistingtextswithoutjeopardizingthefruitsofmanycenturiesof civilcodestradition.

UNIDROIT:HistoricalBackground

UNIDROIT,theInternationalInstitutefortheUnificationofPrivate Law,hadbeenfoundedinRomein1926asanorganoftheLeague of Nations.Since theSecond World War, however,it has operated as an independent intergovernmental organization. Members of UNIDROIT number some sixtyone countries, including several Arab countries. 5 Its most important contribution in the field of private law, so far, was the preparation of Principles of International Commercial Contracts of 1994 (PICC 1994). 6 These Principles cover general provisions such as freedom of contract, binding character of contracts, and good faith.7In addition, these principles cover the topics of formation of contracts, validity, interpretation and content, performance, nonperformance and remediesfornonperformance.However,thePICC1994scoverage ofthelawofcontractwasnotcomprehensive.

5 SeeUNIDROIT,Membership,availableat <http://www.unidroit.org/english/members/main.htm>(lastvisited January23,2008). 6 In1980,theUNIDROITSecretariatsetupaworkinggrouptodraftaset ofprinciplesoninternationalcommercialcontracts.SeeMichael JoachimBonell,AnInternationalRestatementofContractLaw28(3ded. 2005). 7 Thetextofeachprinciplewasfollowedbyacommentaryincluding illustrations.Thestructureofthepublicationwasthusinspiredbythe AmericanRestatements.SeeUNIDROIT,PrinciplesofInternational CommercialContracts(1994).

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ItwasthereforeonlynaturalthatUNIDROITsGoverningCouncil, in 1997, set up another working group, the primary task of which was to consider a number of additional topics. The UNIDROIT Principles of International Commercial Contracts of 2004 (PICC 2004) are the result of the deliberations of this second working group.8The PICC 2004 has now replaced the 1994 Principles. The PICC 2004 contains new topics such as plurality of parties, assignment,substitutionofanewdebtor,setoff,andprescription. Since their issuance, the UNIDROIT Principles have received considerable attention internationally. Specifically, they have generatedasubstantialamountofliteratureandhaveplayedarole inthedraftingofinternationalcommercialcontracts.9Additionally, theUNIDROITPrinciplesareincreasinglyusedbyarbitraltribunals and,occasionally,evenbynationalcourts.10

Prescription

According to the civilian tradition, prescription is a means of acquiring real rights or of losing certain rights as the result of the passageoftime.Thereareseveraltypesofprescriptionaccordingto their operation and effect. Traditionally, prescription has been divided into two categories: acquisitive or positive prescription, which is a mode of acquiring ownership through possession for a period of time, and liberative or negative prescription, which is a modeofresistingaclaimbyvirtueoftheclaimantsinactionoveran

8 FormoredetailsseeMichaelJoachimBonell,UNIDROITPrinciples 2004TheNewEditionofthePrinciplesofInternationalCommercial ContractsadoptedfortheInternationalInstitutefortheUnificationof PrivateLaw,9UniformLawReview6(2004). 9 AcomprehensivebibliographyforthePrinciplesingeneralcanbe foundinMichaelJoachimBonell,TheUNIDROITPrinciplesinPractice: CaseLawandBibliographyonthePrinciplesofCommercialContracts (2002). 10 SeeCharlesN.Brower&JeremyK.Sharpe,TheCreepingCodification ofTransnationalCommercialLaw:AnArbitratorsPerspective,45 VirginiaJournalofInternationalLaw199,205220(2004)(citingseveral arbitraltribunalsthatinvokedtheUNIDROITPrinciples).

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establishedperiodoftime.11However,therecouldbeathirdkindof prescription;prescriptionofnonuse.12 Acquisitive prescription allowsfor theacquisition of ownership or otherrealrightssuchasusufructbypossessionforaperiodoftime. A person who has possession of a movable or immovable without being its owner, or of a real right over a movable or immovable withoutjusttitlemayacquiretheownershipofthethingortitleto the real right if his possession continues uninterrupted for fifteen years. 13 This is not the place for a full discussion of acquisitive prescriptionasitbelongstothelawofproperty.14
11 IntheFrenchCode,thesetwokindsofprescriptionaretreatedinthe sametitlebecausethereareanumberofruleswhichapplytoboth kindsofprescription.SeeG.BaudryLacantinerie&A.Tissier,Traite TheoriqueEtPratiqueDeDroitCivil,No.24(4thEd.1924),In5CivilLaw Translations14(La.StateL.Inst.trans.1972).Arabcivilcodeshavea differentandmorelogicalarrangement.Arabcivilcodesdevote separatesectionstoliberativeprescriptioninthechapterthatnumerates thevariousmodesofextinguishinganobligationwhiledealswith acquisitiveprescriptioninanotherchapterasoneofthemodesof acquiringownershiporrealrights.SeeGeorgeN.Sfeir,Modernization OfTheLawInArabStates:AnInvestigationIntoCurrentCivilCriminalAnd ConstitutionalLawInTheArabWorld101113(1998). 12 Theprescriptionofnonusediffersfromliberativeprescriptioninthat liberativeprescriptionbarsanaction,whereastheprescriptionof nonuseextinguishestheunderlyingrealright.However,likeliberative andacquisitiveprescription,theprescriptionofnonuseissusceptibleof renunciation,interruption,andsuspension.SeeSymeonSymeonides, OneHundredFootnotestotheNewLawofPossessionandAcquisitive Prescription,44LouisianaLawReview69,116(1983). 13 SeeEgyptianCivilCode,art.968;LibyanCivilCode,art.972;IraqiCivil Code,art.1158;JordanianCivilCode,art.1181;andSyrianCivilCode, art.917.SeealsoTereniaUrbanGuill,Palomequev.Prudhomme:The LouisianaSupremeCourtRulesonAcquisitivePrescriptionof ServitudesofLightandView,70TulaneLawReview1675,1681(1996). (IntheU.S.,theLouisianaSupremeCourtaffirmedthatservitudesof lightandviewmaybeacquiredthroughacquisitiveprescription, providedthattheadversepossessorhasjusttitleandhaspossessedthe uninterruptedrightingoodfaithfortenyears.) 14 FormoreseeFarhatJ.Ziadeh,PropertyLawintheArabWorld3660 (1979).

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Liberativeornegativeprescriptionisamodeofbarringofactionsas a result of inaction for a period of time. Liberative prescription is notmerelyamechanismforthereleaseofdebts;rather,itisamode ofextinctionofclaims.Thus,liberativeprescriptionextinguishesthe legal right of enforcement; it does not extinguish the underlying obligation.15When the action is barred by prescription, a natural obligation still subsists, although the civil obligation is extinguished.Anaturalobligationisbindingonapartynotbythe forceoflaw,butbytheconscienceoftheindividualwhomakesit.16 Theremainingnaturalobligationmayformthebasisofanewand legallyenforceablecontract,andanyamountspaidbytheobligorin satisfactionofthisobligationmaynotberecoveredaspaymentofa thingnotdue. Civil law jurisdictions generally regard liberative prescription as a substantiveissue.17Ontheotherhand,thecommonlawviewisthat liberativeprescriptionisaproceduralissuebecauseitaffectssolely the nature of the remedy to be afforded. 18 However, this classificationassubstantiveandproceduralcanbedifficultbecause substance often gradually shades into procedure. Liberative prescription may be considered to have both substantive and proceduralaspects.
15 SomeschoolsofSunnijurisprudenceallowanactiontoenforceaclaim ofrighttobebarredbythepassageoftime.However,theShariadoes notrecognisethelegalnotionofprescriptionasextinguishinganyright. Thuseveninthoseschoolswhichtimelimitationbarsaclaimfrom beingjudiciallyheardandenforcedtherightofselfhelporsetoff (taqas)canstillbeusedasanextrajudicialremedy.Thisdistinction betweenalegalrightanditsenforcement,whichiscogent,hasgreatly influencedthelawsofArabcountries.SeeMahirJalili,TimeBar ClausesinSaudiArabianContracts,13InternationalConstructionLaw Review488,49091(1996). 16 SeeDavidV.Snyder,ASymposium:TheCaseofNaturalObligations, 56LouisianaLawReview423,425428(1995). 17 SeeConflictofLaw:StatutesofLimitationintheMultistateProduct LiabilityCase,48TulaneLawReview1130,1134(1974). 18 SeeLocke,UseofForeignStatutesofLimitationsinIllinois:An AnalysisofStatutoryandJudicialTechnique,34DePaulLawReview 407,413(1985).SeealsoDevelopmentsintheLawStatutesof Limitation,63HarvardLawReview1177(1950).

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The following parts will highlight the similarities and differences between the PICC 2004 and the civil codes of Arab countries with regardtotherulesofliberativeornegativeprescription. 3.1 TheLegalPolicyUnderlyingPrescription

TheprescriptionrulesofboththePICC2004andthecivilcodesof Arabcountriesarefoundeduponthesameconsiderationsofpublic policy. For the sake of the general peace and to prevent dishonest actions, the law provides that after a certain length of time obligationsshallnotbeenforceableiftheobjectionistakenthatthe righthasbeenprescribed.19Documentsmaybelost,witnessesmay bedead,andtherecollectionofeventslongpastmayhavebecome dim. It is for these reasons that the law comes to the help of the debtorbycreatingapresumptionofpayment.Whenthetimefixed by law for prescription has expired a presumption of discharge is created. The legal policy underlying prescription can be said to illustrate the very broad rule that the law helps those who help themselves. 3.2 Terminology

The PICC 2004 and Arab civil codes use a different terminology when referring to prescription. The PICC 2004 employs the term limitation periods while Arab civil codes generally use the term prescription. 20 However, the only Arab country to use the term limitationofactionsisSudanasitisinfluencedbycommonlaw.21 At common law, the term prescription refers to the process by whichlimitedrightsofuseoveranothersland,suchaseasements,

19 SeeReinhardZimmermann,ComparativeFoundationsoftheLawonSet OffandPrescription76(2002).SeealsoHSShaaban,Commercial TransactionsintheMiddleEast:WhatLawGoverns?31Law&Policyin InternationalBusiness157,164165(1999). 20 SeeUNIDROIT,PrinciplesofInternationalCommercialContracts,art. 10.1(2004).SeealsoHishamR.Hashem,TheJordanCivilCodeofMoslem Jurisprudence63(1990)(article449oftheJordaniancivilcodecarriesthe headingprescriptionwhendiscussingextinguishmentofclaims). 21 ZakiMustafa,TheCommonLawInTheSudan:AnAccountOfTheJustice, Equity,AndGoodConscienceProvision168(1971).

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may be acquired.22When talking about prescription in the sense used in Arab civil codes, common law countries such as the U.S. refertostatuteoflimitations. Thedifferenceinterminologyispracticallyirrelevant.Whetherthe term prescription or limitation period is used, it produces the same effect. Prescription does not affect the right (i.e., the substantive cause of action), but merely the obligee or creditors ability to pursue that right in court.23In other words, prescription forms a bar that restricts the time within which legal proceedings maybebrought. 3.3 PeriodsofPrescription

Under Arab civil codes, there is a general fifteenyear period of prescription,knownaslongprescription.24Thepublicpolicyhereis mainlytopreventcontestswhichariselongaftertheobligationwas formed. The creditor who has remained inactive for so long is regarded as having lost his right of action and there is a presumptionofpayment. The general prescription period fixed in Arab civil codes is longer than the period of the PICC 2004. Under article 10.2 of the PICC 2004,thegeneralperiodofprescriptionisthreeyears.However,the general period of prescription provided in the PICC 2004 is accompaniedbyamaximumperiodoftenyears.25Incomparisonto thesingleperiodofprescriptioninthePICC2004,Arabcivilcodes containseveralprescriptionperiodsforparticularcases.

22 SeeBarryJ.Kusinitz,AdversePossessionandEasements,47Rhode IslandBarJournal5(1999). 23 SeeMohammadSewar,GeneralTrendsInTheUnitedArabEmiratesCivil TransactionsLawAsComparedWithOtherArabCivilCodes214(1989). 24 SeeEgyptianCivilCode,art.374;IraqiCivilCode,art.429;Jordanian CivilCode,art.449;KuwaitiCivilCode,art.438;MoroccanCivilCode, art.387;SyrianCivilCode,art.372;andUnitedArabEmiratesCivil Code,art.473. 25 SeeUNIDROIT,supranote20,atart.10.2(2).

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In Arab civil codes, the term of prescription for rent, instalments, allowancesformaintenance,andpaymentsforhireisfiveyears.26In order for this prescription rules to apply, courts insist on two qualities; regularity and periodicity.27 In general, the prescription period for any sum payable by the year or at shorter recurring intervalsisfiveyears.Themotiveofpublicpolicy,whichunderlies prescription of five years, is not quite the same as in the long prescription. It is based not so much upon the presumption of paymentasupontheprinciplethatperiodicalpaymentsofthiskind areexpectedtobemetoutofrevenue.Ifthecreditorissonegligent as not to sue for his right within five years it would not be fair to compelthatdebtortopaywhatmightbealargecapitalsum.Thus, thepublicpolicyisnotsomuchthatthelawpresumesthecreditor hasbeenpaidasthatitpunisheshimforhisnegligence. The term of prescription is five years for sums due to physicians, lawyers, engineers, pharmacists, experts, teachers, brokers, and professors in return for services they have performed and for expensestheyhaveincurred.28Theprescriptionhereisbasedupon presumption of payment. Arab civil codes limit the fiveyear prescription period to these professionals. Thus, accountants, translators,orartistsareexcludedfromitscoverage.Inaddition,the
26 SeeEgyptianCivilCode,art.375;JordanianCivilCode,art.450; KuwaitiCivilCode,art.439;MoroccanCivilCode,art.391;andSyrian CivilCode,art.373. 27 SeeCaseNo.234,EgyptianCourtofCassation,Vol.30,270(May5, 1979).SeeCaseNo.130,EgyptianCourtofCassation,Vol.31,130 (March1,1980).SeeCourtofCassationCaseNo.124/1999,Journalof JordanianBarAssociation2439(2000). 28 SeeEgyptianCivilCode,art.376;IraqiCivilCode,art.431;Jordanian CivilCode,art.451;SyrianCivilCode,art.373;andUnitedArab EmiratesCivilCode,art.475.Arabcivilcodesclasstogether physicians,lawyers,engineers,professors,andteachers.Itmightbe arguedthatthereisagoodreasonforputtingtheseprofessionalsinthe sameclassastheyareengagedtoperformnotasingleactbutaseriesof acts.Thequestionthatariseswhether,forpurposesofprescription,to treateachvisitofaphysician,eachpieceofworkofanengineer,each litigationofalawyerascreatingaseparatedebt,ortotreattheir servicesasalumpsumwhenthewholeactivityiscompleted.Thisissue isbynomeansfreefromdifficulty.

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scope of coverage for this prescription is limited to services performed and expenses incurred as a result of their works. Any otherserviceandexpensefallsoutsidethescopeofcoverage. The term of prescription is two years for sums due to merchants and artisans for things they have supplied to persons who do not tradetherein,andtherightsofhotelandrestaurantownersforthe accommodations and price of food, and the right of workers and servants. 29 The category of workers and servants include cooks, drivers, and plumbers. 30 In order for the twoyear prescription period to apply, the rights of merchants and artisans must result fromsupplyofthingstootherpersonswhodonottradetherein.If thosepersonstowhomthingsaresuppliedtradeinthesethings,the debt becomes commercial and thus subject to commercial law. 31 Like the fiveyear prescription period, the twoyear prescription discussedhereisbaseduponpresumptionofpayment. The way of proceeding adopted by the PICC 2004 considerably simplifiesthestructureoftheprescriptionperiod.Accordingtothe PICC 2004, there is always only one period of prescription. As a rule, there is the threeyear period which can be extended to no more than ten years. On the other hand, Arab civil codes set a generallongprescriptionperiod;fifteenyearprescriptionperiod.In addition, Arab civil codes numerate several cases where the prescription period can be either two or five years, depending on the categories of individuals concerned. The PICC 2004 scheme appears to promote more clarity and uniformity in prescription periodscomparedwithArabcivilcodes.

29 SeeJordanianCivilCode,art.452;andUnitedArabEmiratesCivil Code,art.476.However,theprescriptionperiodforthesecategoriesof individualsisoneyearintheEgyptian,Iraqi,Kuwaiti,andSyriancivil codes.SeeEgyptianCivilCode,art.378;IraqiCivilCode,art.431; KuwaitiCivilCode,art.442;andSyrianCivilCode,art.375. 30 SeeCourtofCassation,CaseNo.496/91,JournalofJordanianBar Association1813(1992). 31 Incommercialmatters,theprescriptionperiodistenyears.See JordanianCourtofCassationCaseNo.2209/2003,AdalehCenter Publications(November17,2003).

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3.4

CommencementofthePrescriptionPeriod

The period of prescription runs from the beginning of the first complete day after the day upon which possession has been acquired in the case of acquisitive prescription, or after the day upon which the obligation has matured in the case of liberative prescription. 32 The period of prescription is calculated by days. 33 Thus, the period cannot be calculatedby hours orminutes,asit is easytopreserveevidenceofthedateofthetransaction.However,if it were necessary to prove the hour of the day for purposes of prescription, innumerable difficulties would arise from the variationsoflocaltimesindifferentcountries. A further consequence of the rule that time is reckoned by days is thattheprescriptionperioddoesnotexpireuntilthelastmomentof thelastdayoftheterm.Accordingly,iftherightofactionhasbeen acquired on the July 20, 1994, prescription does not begin to run until the first minute of July 21, 1994, and if the prescription is fifteenyears,itwillnotbecompleteuntilthelastminuteofJuly21, 2009.Ifthelastdayfallsonalegalholiday,prescriptionaccrueson theexpirationofthenextdaythatisnotalegalholiday. In Arab countries two calendars are in use; the Arab calendar and the Gregorian calendar. Under the Arab Calendar, the year is shorterthanitisintheGregoriancalendar.Thequestionthatarises next is according to which calendar the prescription period is calculated?Inthepast,therehasbeenmuchdoubtuponthispoint. Arab civil codes are silent on this point.34One reason that could offeranexplanationforuseoftheGregoriancalendaristhefactthat ArabcodesmentiontheArabcalendarinfewinstances. Seeingthat codes rarely mention the Arab calendar one must conclude that, whentheyaresilentastowhichcalendaristobeapplied,theymust
32 SeeEgyptianCivilCode,art.381;JordanianCivilCode,art.454;Syrian CivilCode,art.378;andUnitedArabEmiratesCivilCode,art.478. 33 SeeEgyptianCivilCode,art.380;JordanianCivilCode,art.456;Syrian CivilCode,art.377;andUnitedArabEmiratesCivilCode,art.480. 34 TheYemeniCivilCodeistheonlycodethatexplicitlyreferstotheissue ofcalendaruse.Theperiodofprescriptioniscalculatedaccordingtothe ArabcalendaranditsequivalentintheGregoriancalendar.SeeYemeni CivilCode,art.457.

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(2008)20.1BONDLAWREVIEW mean the Gregorian calendar. This is an application of the rule expressio unius. 35 But this argument is not enough to justify the conclusion that the Gregorian calendar is intended because it may notbetruethatthemereexpressconferralofarightinonesituation impliesthedenialoftheequivalentrightinothersituations.Other reasonsthatcouldsupporttheviewthattheGregoriancalendaris intendedincludecourtjurisprudence. Courtshaveheldthatincase of prescription the period should be computed according to the Gregoriancalendar.36Thelaw,probably,isnowsettledwithregard to which calendar to use and it is taken for granted that the Gregoriancalendarisintended. Arabcivilcodesdonotaddressthecasewherethelawischanged after prescription begins to run. The change in law may cause the suittobebarred.37However,inordertoavoidthisscenario,courts could use parts of the time which elapsed under the old and new laws. In other words, the time the plaintiff has in which to sue is determined by forming a part of the new time to the old and multiplying that fraction by the amount of time remaining under the old prescriptive period at the effective date of the new period. The formula advanced above applies equally well to laws that lengthenorshortentheprescriptiveperiod. AccordingtothePICC2004,theperiodofprescriptionbeginstorun on the day after the day the creditor knows or ought to know the factsasaresultofwhichthecreditorsrightcanbeexercised.38The criterion of knowledge should be raised and established by the creditor. On the other hand, Arab civil codes permit the period of prescriptiontorunfromthedaywhentheobligationbecomesdue forfulfilment.ThewayprescriptioninArabcivilcodescommences
35 Theruleexpressiounius,aLatinmaxim,isacanonofstatutory interpretationwhichstatesthattoexpressorincludeonethingimplies theexclusionoftheother,orofthealternative.SeeReedDickerson,The InterpretationandApplicationofStatutes234235(1975). 36 SeeforexampleCourtofCassation,CaseNo.205/80,Journalof JordanianBarAssociation337(1991). 37 Forexample,if,attheinceptionoftheplaintiffscauseofaction,the applicableprescriptiveperiodistwoyearsand,oneyearafterthecause ofactionhasarisen,thelawreducestheperiodtooneyear,arguably theplaintiffsactionhasbeenprescribed. 38 SeeUNIDROIT,supranote20,atart.10.2(1).

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issimplerthanthePICC2004.Arabcivilcodesdonotindulgeinthe discussion whether the creditor has knowledge or not of his right. Thestartoftheprescriptionperiodisnottiedtodiscoverabilityby thecreditor. ThePICC2004doesnotstatewhethertheperiodofprescriptioncan be expressed in hours. Furthermore, when compared with Arab civilcodes,thePICC2004lacksageneralprovisionforcalculatinga timeperiod.Forexample,prescriptioninArabcivilcodesdoesnot begin to rununtil the first minute of the next day upon which the rightofactionhasaccruedandwillnotbecompleteduntilthelast minute of the last day. The availability of such a provision in the PICC2004wouldhavebeenjustasappropriateasitisintheArab civilcodes. 3.5 SuspensionofPrescription

According to Arab civil codes, the presence of lawful excuse suspendstherunningofprescription.39Morespecifically,Arabcivil codes enumerate several cases of suspension: absence of creditor, incapacitysuchasminority,forcemajeure,andrelationshipsbetween spouses and parents and their children.40However, the Jordanian civilcodeistheonlyArabcivilcodethatdoesnotlistthecasesof suspension. 41 Thus, the Jordanian civil code adopts a flexible approach by requiring the presence of lawful excuse without furtherelaboration. Absenceofcreditormeansthatheisaway,butstillalive,fromhis country or place of residence. 42 Minority refers to a person not attainingtheageofmajorityorlegalage,generallysetaseighteen
39 SeeEgyptianCivilCode,art.382;JordanianCivilCode,art.457; KuwaitiCivilCode,art.446;MoroccanCivilCodeart.379;andYemeni CivilCode,art.450. 40 Ibid. 41 SeeJordanianCivilCode,art.457.SeealsoCourtofCassation,CaseNo. 933/1990,JournalofJordanianBarAssociation1945(1991)(theJordanian civilcodestatedlawfulexcuseinanopenmannersoastoincludeany excusethatsuspendsprescription). 42 SeeEgyptianCivilCode,art.382;KuwaitiCivilCode,art.446;and MoroccanCivilCode,art.380.

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years in Arab civil codes.43Minority is considered valid excuse for suspending prescription provided that a representative for the minor has not been appointed. 44 However, the minor does not appeartobesufficientlyprotectedincaseswheretherepresentative fails to pursue his claim before the period of prescription has elapsed.Arabcivilcodesshouldprovideforanextensionbywayof postponementofexpiryoftheperiodofprescriptionnotonlywith regard to claims held by or against a minor who is without a representative,butalsowithregardtoclaimsbetweenaminorand his representative. Force majeure denotes the occurrence of an unexpected event beyond the creditors control and which the creditor could not avoid or prevent. Examples of force majeure include earthquakes, volcanoes, floods, and storms. These three cases of suspension are factbased. Courts in Arab countries will determine whether these cases meet the lawful excuse bar on a casebycasebasis. Arab civil codes suspend prescription as between: the spouses duringmarriage,parentsandchildrenduringminority,tutorsand minors during tutorship, and curators and interdicts during interdiction. 45 The suspension is made necessary as a matter of fairness and to maintain stability. As between spouses and as between parents and their children, the provision encourages harmonybetweenthemembersofthesespecialrelationships.46The
43 SeeS.E.Rayner,TheTheoryofContractsInIslamicLaw:AComparative AnalysisWithParticularReferencetotheModernLegislationinKuwait, Bahrain,andtheUnitedArabEmirates121124(1991)(modernlegal systemsdesignateaspecificageofmajority.Forexample,theageof majorityintheKuwaiticivilcodeiseighteenyearswhileitistwenty oneyearsintheUnitedArabEmiratescivilcode.Ontheotherhand,the Bahrainilawofcontractdoesnotdefinetheageofmajority). 44 SeeEgyptianCivilCode,art.382;KuwaitiCivilCode,art.446;and MoroccanCivilCode,art.379;andYemeniCivilCode,art.450. 45 SeeEgyptianCivilCode,art.382;IraqiCivilCode,art.435;KuwaitCivil Code,art.336;MoroccanCivilCode,art.378;andYemeniCivilCode, art.452.SeealsoCourtofCassation,CaseNo.934/1990,Journalof JordanianBarAssociation1974(1991). 46 Thosepartiesarepreventedfromsuingeachotherexceptforafew enumeratedcauses.Forexample,spousesmaysueeachfordivorceand causesofactionpertainingtothecustodyofachildoralimonyforhis support.

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suspensionsasbetweentutorsandminorsduringtutorshipandas between curators and interdicts during interdiction reflect the legally unequal positions in which these parties stand in their relationships. ThesuspensionofprescriptioninArabcivilcodespresupposesthat the period has already begun to run but an excuse appeared that prevents its continuation. Furthermore, the suspension of prescription presupposes that the period has not been completed, otherwise there is no suspension. The period of prescription remainssuspendedaslongasthereisabsenceofcreditor,minority, orforcemajeure.Oncethelawfulexcuseceasestoexist,theperiodof prescription begins to run again by adding the previous period to the new one.47In other words, the time during which the lawful excuse existed does not count for the computation of the prescriptionperiod. The PICC 2004 recognizes three grounds of suspension: force majeure, death, and incapacity.48In a manner similar to Arab civil codes, force majeure refers to an impediment which is beyond the creditors control and which the creditor could neither avoid nor overcome. However, the impact of this cause of suspension is determineddifferentlyinthePICC2004fromthatintheArabcivil codes. The PICC 2004 provides that the period of prescription is suspended so as not to expire before one year after the relevant impedimenthasceasedtoexist.ThePICC2004triestomitigatethe influenceofthiscauseforsuspensionontherunningoftheperiod of prescription for, as a result of the PICC 2004 language, only impedimentsthathaveoccurredwithinthelastyearoftheperiodof prescriptionaretakenintoaccount.Toputitdifferently,thereisno reason to take into account events which have arisen, and fallen away,wellbeforetheendoftheperiodofprescription,i.e.,atatime when the creditor still had ample time to pursue his claim. Otherwise, the computation of periods of prescriptions would be rendered unreasonably difficult. Moreover, it appears unnecessary to accord to the creditor the full year after the impediment has
47 SeeJordanianCivilCode,art.457(2). 48 SeeUNIDROIT,supranote20,atart.10.8(1).

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ceased to exist as most of the impediments covered by the PICC 2004lastonlyforashortperiodoftime. ThePICC2004alsoconsidersincapacityanddeathasothercauses forsuspension.49Thesamerulesofforcemajeureapplyinthesetwo causes. Similarly, the additional oneyear period in case of force majeureapplies.Theonlyspecialrulewhichappliestothecasesof incapacityanddeathconcerningtheendofthesuspensionwhereby arepresentativefortheincapacitatedordeceasedpartyoritsestate has been appointed; or a successor has inherited the respective partysposition.However,thePICC2004doesnotaddresstheissue when the incapacity ends without a representative having been appointed. TherulesofArabcivilcodesconcerningforcemajeureandincapacity seemsimilartotherulesofthePICC2004.Forexample,Arabcivil codes and the PICC 2004 use the term incapacity in a broader manner to include not only minority but also insanity, negligence, prodigalspendthrift,physicaldisability,anddeathsickness. 3.6 InterruptionofPrescription

While there are cases that suspend prescription, there are other cases that lead to the interruption of the prescription period. 50 Admission of debt on the part of the debtor and instituting of
49 Ibid,art.10.8(2). 50 TheBookofRulesofJustice,knowninArabicasMajalla,influencedthe draftingofArabcivilcodes.Chapter2oftheBookofRulesofJustice dealswiththecausesforinterruptionoftheperiodoflimitation.For example,ifacourtactionisbrought,theperiodisinterrupted.SeeLaw intheMiddleEast:OriginandDevelopmentofIslamicLaw292296,305305 (MajidKhadduri&HerbertJ.Liebesnyeds.,1955)(TheBookofRulesof JusticewasaproductoftheOttomanreformmovementandwasbased ontheHanafischooloflaw.ItcodifiedtheIslamicprincipleswhich servedasthecivillawoftheOttomanEmpireandthentheArab countries).SeeCourtofCassation,CaseNo.325/1972,Journalof JordanianBarAssociation1527(1972)(Accordingtoarticles1660,1663, and1666oftheMajalla,causesofsuspensionofprescriptionare: minority,insanity,absence,negligence,andforcemajeure.Ontheother hand,causesofinterruptionare:admissionofthedebtand commencingoflegalproceedings).SeealsoCourtofCassation,Case No.340/1972,JournalofJordanianBarAssociation1549(1972).

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judicial proceedings on the part of the creditor interrupt the running of the prescription period. The difference between suspension and interruption of prescription is in computing the prescription period. In case of suspension, once the lawful excuse for suspension ceases to exist, the period of prescription begins to runagainbyaddingthepreviousperiodtothenewone.Incaseof interruption, the previous period of prescription will not be taken into account when calculating time. 51 Rather, the period of prescription will be renewed as if the previous period had never existed. Arab civil codes provide that the debtors explicit or implicit admission of the right of the creditor interrupts the prescription period. 52 The texts of Arab civil codes did not condition the admission of the debt on the occurrence of a certain event or passage of time. To the contrary, admission of the right of the creditor was used in absolute terms. Hence, admission of the debt can be made by the debtor at any time and during any stage of courtaction.Oncethedebtoracknowledgestherightofthecreditor willingly, he cannot withdraw his acknowledgement. Acknowledgementofthedebtinterruptstheperiodofprescription andanewperiodwillcommence. Explicit or implicit admission of the right of the creditor can be expressedbyanymode.Thecourtwilldeterminewhetherthereis an explicit or implicit admission of debt based on the facts of the case in question. For instance, courts have found that the debtor could admit a debt by writing a statement to that effect, acknowledging the debt orally, presenting a surety or mortgage, partially paying the debt, and invoking a setoff.53However, court
51 SeeJordanianCourtofCassationCaseNo.2365/2005,AdalehCenter Publications(April2,2006). 52 SeeEgyptianCivilCode,art.384;IraqiCivilCode,art.438;Jordanian CivilCode,art.459;KuwaitiCivilCode,art.449;MoroccanCivilCode, art.382;SyrianCivilCode,art.381;UnitedArabEmiratesCivilCode, art.483;andYemeniCivilCode,art.453. 53 ForexamplesonthejurisprudenceofJordaniancourtsseeCourtof Cassation,CaseNo.236/82,JournalofJordanianBarAssociation996 (1982),CourtofCassation,CaseNo.811/90,JournalofJordanianBar

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caseshavenotaddressedwhetherasettlementofferissufficientto acknowledgeadebt,andthusinterruptsprescription. ThePICC2004alsoprovidesthatanacknowledgementoftheright of the creditor on the part of the debtor interrupts prescription.54 The acknowledgement ofthe right of the creditorleads to renewal of the period of prescription. In other words, any previous prescriptionperiodwillnotbecountedincaseofinterruption. Inadditiontoadmissionofdebtonthepartofthedebtor,Arabcivil codes provide that instituting a judicial action or any judicial measure leads to the interruption of the prescription period. 55 Prescriptionisinterruptedwhenthecreditorcommencesanaction against the debtor in a court. According to Arab civil codes, the action that interrupts prescription is judicial action only. Claims madeoutofcourtdonotconstituteaninterruption.56Althoughnot defined, any judicial measure may include the service of process. Forexample,ifactioniscommencedinanincompetentcourt,orin an improper venue, prescription is interrupted only as to a defendantservedbyprocesswithintheprescriptiveperiod. ThepositionofArabcivilcodesshouldbeclarifiedwithrespectto the duration of interruption of prescription while an action is pending before the court. Arab civil codes should provide that interruption of prescription resulting from the filing of a suit in court continues as long as the suit is pending. When a suit filed within the prescriptive period is dismissed on grounds other than lackofjurisdiction,thefilingactsasacontinuousinterruptionuntil
Association896(1992),CourtofCassation,CaseNo.1730/1994,Journalof JordanianBarAssociation2776(1996),JordanianCourtofCassationCase No.273/2000,AdalehCenterPublications(October26,2000),and JordanianCourtofCassationCaseNo.3058/2006,AdalehCenter Publications(February2,2007). 54 SeeUNIDROIT,supranote20,atart.10.4(1). 55 SeeEgyptianCivilCode,art.383;IraqiCivilCode,art.437;Jordanian CivilCode,art.460;KuwaitiCivilCode,art.448;MoroccanCivilCode, art.381;SyrianCivilCode,art.380;UnitedArabEmiratesCivilCode, art.484;andYemeniCivilCode,art.453. 56 However,theMoroccancivilcodeistheonlycodethatallowsclaimsto bemadeoutofcourt.SeeMoroccanCivilCode,art.381.Thus, accordingtotheMoroccancivilcode,anactofmediationthrougha thirdpartyinterruptsprescription.

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the suit is dismissed. Upon dismissal a new prescriptive period begins to run. A different situation obtains, however, when a plaintiff abandons, voluntarily dismisses, or fails to prosecute the suit at the trial. In any of these instances, interruption should be considered as never occurred. The terms abandonment and failurehavenotbeendefinedbythecodesorcourtsjurisprudence. InamannersimilartoArabcivilcodes,thePICC2004providesthat the commencement of legal proceedings interrupts the running of the period of prescription.57Nonetheless, in comparison with Arab civil codes, the PICC 2004 allows insolvency proceedings and, wherethedebtorisanentitythatisinthecourseofbeingdissolved, dissolution proceedings to interrupt prescription. 58 Additionally, thePICC2004containsadetailedprovisionontheeffectofarbitral proceedings on the running of prescription which is very closely modelled on the one concerning judicial proceedings.59Alternative disputeresolutionmechanisms,also,havetheeffectofinterrupting prescription. 60 The rules of judicial proceedings and arbitral proceedings are applicable mutatis mutandis to alternative dispute resolution. In contrast with the PICC 2004, Arab civil codes do not cover arbitration proceedings and alternative dispute resolution proceedings.Thereasonforthisstateofaffaircouldbethat,atthe time Arab civil codes were written, arbitration and other dispute resolution mechanisms did not take ground on a large scale.61In
57 SeeUNIDROIT,supranote20,atart.10.5(1)(a). 58 Ibid,art.10.5(1)(b)&(c). 59 Ibid,art.10.6. 60 Ibid,art.10.7. 61 SeeCharlesN.Brower&JeremyK.Sharpe,InternationalArbitration andtheIslamicWorld:TheThirdPhase,97AmericanJournalof InternationalLaw643,644648(2003)(InmuchoftheArabregion, arbitrationhaslongbeenviewedwithscepticism,ifnotwithhostility. InmanyIslamicstates,lawsweresimilarlynonexistentordeficientwith respecttoenforcementofarbitralawards).SeealsoFaisalKutty,The ShariaFactorinInternationalCommercialArbitration,28LoyolaofLos Angelesinternational&ComparativeLawReview565,592(2006) (alienationanddistrustofarbitrationwerereinforcedbyseveral1960s internationalarbitrationdecisions).

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sum, the PICC 2004 provides much more comprehensive interruptionprovisions. 3.7 MiscellaneousProvisions

ThereareseveralpointsofdeparturebetweenArabcivilcodesand the PICC 2004. These points concern pleading of prescription, renunciation of prescription, retroactive effect of prescription and accessoryclaims,andmodificationoftheprescriptionperiod. 3.7.1PrescriptionMayBePleadedAtAnyStageoftheProceedings Arab civil codes containsan article which declares that the pleaof prescription maybe set up at any stage of the judicial proceedings andmayevenbepleadedforthefirsttimeinthecourtofappeal.62 Justificationforthisrulecanbebasedonthefactthatprescriptionis initsnatureaperemptoryexceptionandcanbemadeatanystage of the proceedings. But a party will not be allowed to plead liberativeprescriptionwhenthecircumstancesclearlyshowthathe has renounced that plea.63There is no corresponding article in the PICC2004. 3.7.2TheCourtCannotExOfficioGiveEffecttoPrescription Considering that the rules of prescription are based upon public order,itmightappearatfirstsightthatcourtsoughttobeentitled to find that a right had been lost by the expiration of the legal period, although this was not pleaded by the party who would benefit by the prescription. But further consideration shows that
62 SeeEgyptianCivilCode,art.387;IraqiCivilCode,art.442;Jordanian CivilCode,art.464;KuwaitiCivilCode,art.452;MoroccanCivilCode, art.372;SyrianCivilCode,art.384;UnitedArabEmiratesCivilCode, art.488;andYemeniCivilCode,art.455.TheCourtofCassationin JordandeclaredthatprescriptioncannotbepleadedbeforetheCourt forthefirsttime.PrescriptionmustbepleadedfirstbeforetheCourtof FirstInstanceortheCourtofAppeal,andonlythenitcanbepleaded beforetheCourtofCassation.SeeCourtofCassation,CaseNo. 456/1994,JournalofJordanianBarAssociation1948(1995). 63 SeeEgyptianCivilCode,art.387;IraqiCivilCode,art.442;Jordanian CivilCode,art.464;KuwaitiCivilCode,art.452;MoroccanCivilCode, art.372;SyrianCivilCode,art.384;UnitedArabEmiratesCivilCode, art.488;andYemeniCivilCode,art.455.

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suchaconclusionwouldbehighlyinequitable.Thedebtormaynot wishtoevadepayinghisdebtthoughhehasalegalexcuseandthe lawquiterightlyrespectsthisscruple.Arabcivilcodesprovidethat courts cannot ex officio give effect to prescription. 64 Liberative prescription extinguishes the obligation if the debtor or any other interested party invokes prescription. A surety or a codebtor, for example, may plead the prescription. The benefit of prescription existsinfavourofthesepersonseachofwhomhasaproperrightof hisown,distinctfromtherightoftheprincipaldebtororoftheco debtorrespectively. 3.7.3RenunciationofPrescription Arab civil codes contain several articles on the matter of renunciation of prescription while the PICC 2004 has no equivalents. Arab civil codes deal more fully with this matter compared with the PICC 2004. From the outset, it must be remembered that acknowledgment differs from renunciation both in substance and in effect. An acknowledgment interrupts prescriptionanderadicatesthetimethathasaccrued,sothatanew prescriptiveperiodbeginstorun.Renunciation,ontheotherhand, ismadeaftertheprescriptionhasaccrued,andobliteratestheeffect of the prescription that has accrued. For this reason, the rules relative to renunciation are more stringent than those relative to acknowledgment. AccordingtoArabcivilcodes,noonecanrenouncebyanticipation hisrighttoclaimbyprescription.65Apersonmayrenouncearight to claim by prescription after it has been acquired. As has been explained, the rules of prescription are based upon considerations of public policy. It is in the public interest to fix a period within which actions may be brought and to declare that if no action is brought within the stated period all rights shall then be definitely determined. This purpose of the law would be defeated if persons
64 Ibid. 65 SeeEgyptianCivilCode,art.388;IraqiCivilCode,art.443;Jordanian CivilCode,art.463;KuwaitiCivilCode,art.453;MoroccanCivilCode, art.373;SyrianCivilCode,art.385;UnitedArabEmiratesCivilCode, art.487;andYemeniCivilCode,art.456.

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were allowed to deprive themselves by agreement of the right to claim the benefit of prescription. It would become common for creditorstoinsertconditionsthattheirrightsofactionshouldnotbe prescribedatall. Therenunciationofprescriptioniseitherexpressortacit.66Thelaw doesnotmandatethatrenunciationshallbemadeinanyparticular form,and,therefore,accordingtothegeneralprinciples,itmaybe inferredfromanyconductonthepartofthepersonentitledtoclaim prescription, which clearly indicates his intention to renounce the benefit of the prescription which has been acquired in his favour. Butthereisalwaysapresumptionoffactagainstamangratuitously abandoningaright,and,therefore,thecourtwillnotbeentitledto find that there has been a tacit renunciation unless this is the only reasonableinference which can be drawn from thefacts proved. If his conduct, although suggestive of renunciation, is, nevertheless, reasonably capable of another explanation, he should have the benefitofthedoubt. It is not possible to lay down the general rules as to what will amount to tacit renunciation. The question is one which depends upon the facts of each particular case. Among the facts to be consideredwillbethepleadingsintheaction,but,asstatedearlier, thepleaofprescriptiondoesnotneedtobesetupatfirst,andthe factthatthedefendantfirstpleadsotherdefences,suchasthenon existence of the debt, does not in itself amount to a tacit renunciation of the right to plead prescription at a later stage. The debtor may not have known that he was entitled to the plea of prescription, or he may have had conscientious scruples against relying upon a technical rule of law so long as he thought that he might succeed upon other grounds.67At any rates, the facts relied
66 SeeJordanianCivilCode,art.464;andUnitedArabEmiratesCivil Code,art.488. 67 Thefollowingareexamplesoffactsfromwhichtacitrenunciationmay beinferred.Thepaymentofadebt,whichisprescribed,raisesastrong presumptionofrenunciationoftheprescription.Additionally,a paymentonaccountisatacitrenunciationofprescriptionofthewhole debt,unlessthedebtordeclaresatthesametimethatheonlyadmits liabilitytotheextentoftheamount,whichhepays.An acknowledgmentoftheliability,apromisetopaythedebt,arequestto beallowedtime,thegivingorofferingofasecurity,aclaimthatthe

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upon must be subsequent to the date when prescription was acquired, for, otherwise, they would be unavailing. They might amount to a renunciation of the period of prescription, which had alreadyrun,butnomore. Renunciationisthevoluntaryabandonmentofaright,andaperson cannotrenouncearightunlessheknowsthatitexists.68However,it doesnotfollowfromthisthatadebtorwhohaspaidadebtagainst whichhemighthavepleadedprescription,canrecoverwhathehas paid by proving that he was ignorant of his right to claim prescription. The debtor has made a voluntary payment in dischargeofanobligation,andwhatthecreditorhasreceivedwas legally due to him. The debt was not extinguished ipsojureby the lapseoftheprescriptiveperiod;itmighthavebeenextinguishedif thedebtorhadinvokedprescription,butashedidnotdoso,there was a subsisting debt, not a natural debt but a civil debt, and the payment accordingly was not a case of payment of something not due,norwasitapaymentinerrorofanaturalobligation.Theright ofrepetition,therefore,doesnotexist. Renunciation of prescription is a unilateral act which does not requireacceptancetobeeffective.Fromthisprincipleitfollowsthat the renunciation of the claim does not constitute alienation. Althoughtherenunciationisnot,strictlyspeaking,analienation,it isadangerousact.Ifitdoesnotmakethepersonpoorer,itprevents himfrombecomingricher,ashewouldhavebeenifhehadavailed himselfofhisrighttoclaimtheprescription.Accordingly,theright to renounce is given only to persons having capacity to alienate.69 So, in Arab law, minors and interdicted persons, or their tutors actingalone,cannotrenounceaprescription. The renunciation of liberative prescription does not have effect against the creditors of a person bound by an obligation, if such

debthasbeenpaidbycompensation,anagreementtosubmittoa compromise,arefactsfromwhichrenunciationwillinferredunlessthe debtorreservedhisrights. 68 SeeJordanianCivilCode,art.463. 69 Ibid.

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renunciation has been made to prejudice their rights.70There is a question which may arise in regard to the right of creditors. Do creditorsneedtoprovethattherenunciationbytheirdebtorwasin fraud of their rights? Or is it sufficient to prove that the renunciation was to their prejudice? The renunciation of prescriptionisaspecialkindofabandonmentofarightastowhich the creditors must prove both facts, viz., that it was to their prejudice, and that it was in fraud of their rights. If the debtor renouncesthebenefitingoodfaithandhonestly,hiscreditorshave noremedy.However,accordingtoArablaw,creditorsdonotneed toprovefraud,buttheymustprovethattherenunciationcauseda prejudice. It will generally be easy for them to prove prejudice ratherthanfraud. 3.7.4RetroactiveEffectofPrescriptionandAccessoryClaims Prescriptionrulesareremedialinnatureandassucharegenerally accorded retroactive application. Arab laws presume that the debt was discharged at the date when prescription began to run. The presumptionofretroactivityisjudiciallycreated;itisnotbasedona legislative provisions. Indeed, retroactivity seems contrary to the rule which provides that no legal provision has retroactive application unless it is expressly so stated. 71 At any rate, prescription has a retroactive effect in favour of the persons benefitedbytheexpirationofaprescriptiveperiod. Furthermore,inthecaseofliberativeprescription,thedebtorisnot onlyfreedfromtheobligationtopaythecapitalsumbutalsofrom that to pay the interest, and other claims of an accessory nature, which had been running.72This provision is based on the fact that the policy objectives pursued by the law of prescription would be undermined if the creditor could still demand payment of interest
70 Ibid. 71 SeeElEhwany&Ibrahim,supranote2,at2527. 72 Thenonhearingofthecaseforarightduetoprescriptionshallresultin thenonhearingofacaseforitsaccessorieseveniftheperiodof prescriptionprecludingthehearingofthecasefortheseaccessoriesbe notcomplete.SeeEgyptianCivilCode,art.386;IraqiCivilCode,art. 441;JordanianCivilCode,art.462;KuwaitiCivilCode,art.451; MoroccanCivilCode,art.376;SyrianCivilCode,art.383;andUnited ArabEmiratesCivilCode,art.486.

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and any other accessory or ancillary claims that may have become dueonaclaimforwhichtheperiodofprescriptionhasrunout;for the debtor, in order to defend himself, might then be forced to go intothemeritsoftheprincipalclaimitself. There is no corresponding article to accessory claims in the PICC 2004. However, the PICC 2004 deal with the prescription of accessory claims in the commentary on article 10.2.73There is no obvious reason as to why the draftsmen of the PICC 2004 did not writeaspecificandseparateprovisiononaccessoryclaims. 3.7.5ModificationofthePrescriptionPeriod Modification of the legal period of prescription is expressly prohibited by Arab civil codes.74As such, an agreement that the right of action shall prescribe in ten years instead of fifteen years willbenullandvoid.Theprohibitionagainstmodifyingtheperiod of prescription extends to prolongation as well as abridgement of theperiod. TheprovisionsoftheArabcivilcodes,whichlaydowntheperiods of prescription, are undoubtedly based upon public policy. But althoughpublicpolicyrequiresthattherightofactionshallexpire within a certain period, it is not equally clear that public policy requires that a creditor shall enjoy a right of action for the normal period. If the creditor chooses to agree that unless he brings his action within a certain period, which is shorter than the delay to whichhewouldotherwisebeentitled,thereisnothinginthiswhich is contrary to public policy. There are certain cases in which an agreementtoprolongtheprescriptiveperiodoughttobesustained. If a contractor, for example, agrees that instead of being liable for ten years he will be liable for twenty years for defects in the building,thisissurelyintheinterestofpublicpolicy. ThePICC2004isnotthesameasArablaws.ThePICC2004hasan express declaration allowing modification of the prescription
73 UNIDROIT,PrinciplesOfInternationalCommercialContracts320322 (2004). 74 SeeJordanianCivilCode,art.463.SeealsoCourtofCassation,CaseNo. 182/1984,JournalofJordanianBarAssociation1380(1984).

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period.75Parties can agree to extend the prescription period to a maximum of fifteen years. 76 In other word, it is permissible to extend the period of prescription provided that it does not exceed the maximum limit set as fifteen years. Parties can also agree to shorten the prescription period to no less than one year or four years. 77 These limitations on the maximum prolongation and minimum abridgement provide parameters within which parties can manoeuvre.Arab civil codes should follow theexample of the PICC2004insettingparametersforprolongationandabridgement instead of outright prohibition. By setting such parameters, Arab civilcodesgrantfreedomtothepartiesifthereisanyreasontogive longerorshorterdelayandbythesametokenthecodesachievethe publicpolicygoalsintended.

Conclusion

TheconceptofprescriptionhadbeenrecognisedbystatutesinArab countries.Partiescannotcontractoutofthisbydenyingthelapseof a period of time. Courts would invalidate such a provision on the groundsthatitcontravenespublicpolicy.Also,thePICC2004rules recognised prescription as a mode of extinguishing an action to enforceaclaimofright.Asamatteroffact,prescription(chapter10) hasbeenaddedtotheexistingchaptersoftheUNIDROITPrinciples 1994. As far as the general principles contained in Arab civil codes and the PICC 2004 are concerned, there is a considerable degree of similarity.Forexample,theprescriptionrulesofboththePICC2004 and the civil codes of Arab countries are founded upon the same considerations of public policy. Sometimes the same concept is implementedbymeansofadifferenttechnique.Someprovisionsin thePICC2004findequivalentsinArabcivilcodes;andevenwhere therearedifferencestheyare,predominantly,ofatechnicalnature. For instance, the PICC 2004 employs the term limitation periods while Arab civil codes generally use the term prescription. The differenceinterminologyispracticallyirrelevant.
75 SeeUNIDROIT,supranote20,atart.10.3(1). 76 Ibid,art.10.3(2)(c). 77 Ibid,art.10.3(2)(a)&(b).

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Malkawi: Prescription in Arab Civill Codes and the Unidroit Principles of

PRESCRIPTIONINARABCIVILCODESANDTHEUNIDROIT PRINCIPLESOFINTERNATIONALCOMMERCIALCONTRACTS OF2004:ACOMPARATIVEANALYSIS

Arab civil codes cover the general law of contract and obligations while the PICC 2004 relate only to commercial contracts. Considering their different natures, thus herein lies significant differences between the two instruments. Depending on the transactiongivingrisetotheclaim,aclaiminArabcivilcodescan be barred after anywhere between one and fifteen years. On the other hand, prescription periods in the PICC 2004 run between threeyearsandtenyears.Inaddition,thewayprescriptioninArab civilcodesrunsissimplerthanthePICC2004.Arabcivilcodesdo notindulgeinthediscussionwhetherthecreditorhasknowledgeor not of his right. The start of the prescription period is not tied to discoverability by the creditor. Moreover, the rules of Arab civil codes concerning cases of suspension are different. For example, when compared with the PICC 2004, Arab civil codes do not addressdeathasacauseofsuspension. ThePICC2004hasnoprovisionscorrespondingtotheprovisionsin Arab civil codes which relate to pleading and renunciation of prescription. The PICC 2004 is not the same as Arab laws concerning modification of the prescription period. In an express manner, the PICC 2004 permits modification of the prescription period. On the other hand, Arab civil codes prohibit such a modification. Thepurposeofthecomparativeexercisedoneinthisarticlewasto providefeedbackastowhereprescriptionrulesfoundinArabcivil codesstandincomparisonwithrecentandimportantinternational legal instruments. As explained earlier, Arab civil codes and the PICC 2004 wrestle with the same concept, prescription, in moreor lessthesameterms.However,thevalueofstudyingthePICC2004 alongwithArabcivilcodeswasevengreaterbecausetheydodiffer. Whenoneconfrontsasolutiontoalegalissue,hehasatendencyto assume it is the right one. However, when he is confronted with two solutions, he finds that these two solutions can complement eachother. CertainprescriptionprovisionsinArabcivilcodesareunclearand antiquated. It is not proposed here that prescription laws in Arab countries be the same as in the PICC 2004. Rather, the law of prescription in the PICC 2004 can act as a reference for Arab civil

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codes. For example, one matter that requires change in Arab civil codes is the multiplicity of prescription periods. Arab civil codes canadoptthesingleperiodsystemfoundinthePICC2004.Thelaw should be clarified with respect to the duration of interruption of prescription while an action is pending before the court. Besides judicial proceedings, arbitral proceedings and other alternative dispute resolution mechanisms should have the effect of interrupting prescription. Moreover, Arab civil codes could be modified to provide flexibility by permitting modification of the prescription period by the agreement of the creditor and debtor. Therevisionsaddressthedemandsofamodernsocietywithvastly improved means of communications. Arab countries can reconcile between their civil codes and more recent international legal instruments,suchasthePICC2004,withoutjeopardisingtheirown traditionsandvalues.

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